5 Best Technical Analysis Books for Stock and Commodity Traders

Do you think chart reading and technical patterns interests you? Have you been trying to predict the future business trends and market conditions solely based on charts? If it is so, then you are definitely drawn towards technical analysis. The best way for you to start with is to read a few technical analysis books. The reading will help you understand the driving concepts behind these charts, patterns, and indicators. All these books uniquely focus on the technical parameters that help to predict the future price trends.

Most of the technical analysis books with their charts, tables, graphs and every statistical method, are not very easy to read for the amateurs. Here, I am enlisting a few books which are best for people who want to have a sound understanding without tangling in the technical jargon. These books are aimed at both the professionals and the amateurs.

This is the book that tops the chart of Technical Analysis book list. This is a comprehensive guide for the trading methods. It enlists the basic principles of technical analysis. It also focuses on the methods through which these sound principles can be applied to work. This is a great book to help you understand the concepts of technical analysis and also suggest latest technical tools which can help them to meet their ends. Some of the concepts discussed in detail in this book are inter-market relationships, candlestick charting, stock rotation, art and science of chart reading etc. Futures market has also got a special attention.

This is an excellent book for the beginners. As the name suggests, it starts from the basic and ends up explaining the advanced concepts. This book describes almost all the standard terminologies applied in the technical analysis arena. All of this explanation is in an easy to understand format especially targeted for newbies. More than 100 technical indicators and chart patterns are explained in a very interesting manner. The author follows a methodical approach for the explanation. The book is full of practical examples for enhancing the understanding of its readers.

This book is a must-have for the aspirants of CMT (Charted Market Technician) exam. It follows a highly systematic pattern to explain the major concepts of technical analysis like flow of funds, risk mitigation, strategies and testing systems, seasonal effects etc. It is updated with the latest advancements in this field like pattern recognition, experimental indicators like Ichimoku, clouds, Renko etc, portfolio selection etc. The practical approach of this book is impeccable.

Apart from the explanation of the difficult concepts involved in technical analysis, this book consists of interviews of the best minds in the industry like Marty Schwartz, Tom Baldwin etc. This gives invaluable insights to its readers. The experiences shared helps the readers in enhancing their risk management skills and learn the nuance of the technical analysis and trading in an interesting and insightful manner. The book is based solely on the experiences of the successful traders.

This is a sort of Investor’s Guide. The motto of this book says: “The Successful Investor’s Guide to Spotting Investment Trends and Turning Points”. Readers of this book have labeled it as “Bible of Technical Analysis”. It puts the technical analysis as an inseparable part of developing any investment strategy. This is a sort of practical guide for technical analysis and for predicting the price movements to help build the confidence needed for the investing in today’s complex market. The book, again and again, emphasizes on taking calculated decisions instead of the emotional ones, and how to go about it.

There are endless books written on this subject. But the above-illustrated technical analysis books are timeless in their essence and are a must-read for the traders.